Government Update Column: February 2006
In November, we joined a coalition of business
organizations and pharmaceutical companies that have united to stop a package of
legislation in Lansing that would make it easier to sue pharmaceutical companies
in Michigan. We are opposed to this legislation for two reasons: it opens the
door to repeal the tort reform laws passed in the 1990s that protect the
business community; and the life-sciences industry is important to the Ann Arbor area.
According to the Michigan Chamber of Commerce,
in the closing days of the 2005 legislative session, State Rep. Edward Gaffney
(R-Grosse Pointe Farms) introduced House Bill 5527 to repeal retroactively the
state law designed to prevent litigation in state courts against pharmaceutical
manufacturers that have already had their drugs deemed safe and effective by the
U.S. Food and Drug Administration (FDA). HB 4981, introduced by State Rep.
Alexander Lipsey (D – Kalamazoo) in 2005, has a broader focus: to expand the
opportunity to file suit against nearly every industry and profession regulated
under state and federal laws under the Michigan Consumer Protection Act. This
legislation would affect hospitals, employment agencies, engineers, builders,
auto dealers, medical professionals, barber shops and others. The Chamber will
continue to oppose this legislation on behalf of our
membership.
Biggest issues facing Chamber members
• Michigan’s Economy (32 percent)
•
Healthcare (25 percent)
• Taxes/cost of doing business (21 percent)
On a recent e-mail survey, we asked members,
“What is the biggest issue facing your business?” One hundred thirty of the
responses we received were categorized as ‘government related’. 102 of these
answers were either ‘ Michigan’s economy’, ‘healthcare’ or ‘taxes/cost of doing
business.’ We gave members an open-ended question where they could write
anything, and 78 percent of the answers were either Michigan’s economy, health
care or taxes/cost of doing business. The message is
pretty clear…
Ann Arbor and Washtenaw County take solace in
comparing numbers (unemployment rate, etc) with the rest of the state. We like
to think we are completely sheltered inside a University of Michigan bubble. But
it is pretty clear that Ann Arbor area businesses do not consider themselves
separate from the Michigan economy or from the problems facing businesses in
Michigan and across the country. An economic downturn in Michigan does affect
business in Ann Arbor – it is our members’ number one issue right now.
Healthcare costs continue to be a major concern, as do taxes and the cost of doing
business.
The Chamber is focusing its efforts on these
issues in 2006. It is our job to make sure that Ann Arbor and Washtenaw County
address these issues and not go with the U-M
bubble theory.